WELCOME TO FRANCE A GUIDE FOR INCOMING TALENT

Transcription

1 DOING BUSINESS IN FRANCE 2017 BOOK 2 WELCOME TO FRANCE A GUIDE FOR INCOMING TALENT BUSINESSFRANCE.FR

2 There are more than 20,000 foreign companies operating in France, where they employ over two million people: what better advert could there be than this for the business environment in our country? Its steadfast attractiveness as a business location can be seen in that France was ranked third in Europe in 2015 for the number of job-creating foreign investment projects received, and was also the leading destination for foreign investment in industry. With its global outlook and warm welcome for talent in all its forms, France is committed to doing all it can to attract and help investors expand their businesses on French soil. This Doing Business guide is designed in the same spirit of hospitality, as it seeks to provide essential information to investors, key talent and their families on a full range of regulatory, tax and employment law matters that may arise when moving to France. Updated every year, it takes into account all recent reforms to the business environment in France to improve the attractiveness of the French economy. This 2017 edition consequently examines two major reforms to enhance the welcome for incoming talent: - The introduction of Talent Passports, multi-year s for investors, company directors, business founders, skilled employees and their families. - The extension of the special expatriate tax exemption scheme to eight years. Furthermore, a specific procedure for investors and employees that are part of the La French Tech program (e.g. French Tech Ticket winners) has also been introduced through the French Tech Visa. Finally, Business France has created a new personalized online guide, Welcome to France, which is designed to take you through the key stages of moving to France. Caroline Leboucher Chief Operating Officer (Investment Division), Business France

3 1 ENTERING, STAYING AND WORKING IN FRANCE Entering France: holding a visa Residence and paid or self-employment Summary in table form SOCIAL PROTECTION Registering with French social security Exemption from French social security TAXATION Determining tax residency The French tax system for residents Special tax exemption scheme for expatriates Taxation for non-residents TOOLBOX Checklist Welcome to France Useful contacts Business France around the world JULY 2017

4 FRANCE: AN ATTRACTIVE DESTINATION FOR FOREIGN INVESTORS, COMPANY FOUNDERS, COMPANY DIRECTORS AND EMPLOYEES! Recent government measures resolutely focused on openness are making France a destination of choice for foreign investors, founders of businesses and startups, company directors and employees. These nationwide international mobility rules are designed to make it easier for highly qualified personnel to come to France, and for employees to complete intra-company transfers. They include multi-year s, which were made more widely available towards the end of 2016, with the twin aims of smoothing the arrival of incoming foreign talent and their families, and helping to make France a more attractive business location. Companies in France can offer their employees optimum working conditions due to a highly effective social security system and a vast array of bilateral social security agreements while the costs of sending employees to work in France can be offset through one of the most attractive expatriate tax systems in Europe. The main consideration for foreign businesses posting or sending employees to work in France is to choose the most appropriate migration status, the most effective social security coverage and the most advantageous tax status. In all these areas, employers and foreign nationals should work together to anticipate the procedures to be followed to give foreign talent and their families the best possible chance of successfully establishing themselves in France. To help them move and settle in to life in a foreign country, Business France has set up an information service for foreign talent and their families. The Welcome to France website, launched in February 2017, has been designed to take them through the key stages of moving to France, and includes a personalized guide that can be compiled and completed online. The most recent initiative, the French Tech Visa, is a separate procedure for issuing a Talent Passport multi-year, specifically tailored to France s tech ecosystem. 4 JULY 2017

5 1 ENTERING, STAYING AND WORKING IN FRANCE What does entering, staying and working in France involve? What would be the most suitable migration status? These are just some of the key questions for employees or company directors to think about in advance to help them organize their move to France, and ensure that they and their families enjoy their stay in the best possible conditions. If you're coming to France for less than three months, you need a visa EXEMPTION (nationality) > Just present your passport SHORT-STAY VISA > Contact the French consulate in your country of Work required, unless otherwise exempted Coming to work in France EU, EEA and Swiss citizens are free to enter France Citizens of other countries INVESTORS, COMPANY DIRECTORS, ENTREPRENEURS TALENT PASSPORT (up to 4 years, renewable) Investor Company director New business Innovative business project LONG-STAY VISA = RESIDENCE PERMIT (VLS-TS) for entrepreneurs/ independent professionals (1 year, renewable) TALENT PASSPORT (up to 4 years, renewable) Highly skilled employees Skilled employees / employees of an innovative new company (JEI) Employees on intra-company transfer If you're coming to France for more than three months, you need a visa and a EMPLOYEES RECRUITED BY AN EMPLOYER BASED IN FRANCE OTHER PERMANENT CONTRACT IN FRANCE: LONG-STAY VISA = RESIDENCE PERMIT (VLS-TS) for employees (1 year, renewable) FIXED-TERM CONTRACT: LONG-STAY VISA = RESIDENCE PERMIT (VLS-TS) for temporary workers (Contract duration, renewable) 5 JULY 2017 EMPLOYEES POSTED BY AN EMPLOYER BASED ABROAD INTRA-COMPANY TRANSFER RESIDENCE PERMIT (Salarié détaché ICT) (3 years, non-renewable) POSTING FROM OUTSIDE GROUP: LONG-STAY VISA = RESIDENCE PERMIT (VLS-TS) for temporary workers (Contract duration, renewable)

6 1 ENTERING FRANCE: HOLDING A VISA EU, EEA and Swiss nationals are free to travel and work in France without a visa, or work They must simply register with the mairie (municipal offices) of their commune within three months of their arrival. A visa authorizes the holder to enter French territory, travel within the Schengen Area and stay in France for a specified period. Typically, a visa only authorizes its holder to enter France. To stay in France for a longer period and work in the country, a is required. SHORT-STAY VISA: SCHENGEN VISA Unless visitors are exempt due to their nationality, they will require a short-stay visa for business, official visits and personal visits. This visa enables the holder to travel throughout the 26 countries in the Schengen area (EU and EEA Member States, with the exception of Bulgaria, Romania, Cyprus, Croatia, Ireland and the United Kingdom). Length of stay: Short-stay visas can be issued for up to 90 days per 180-day period, either for single or multiple entries to France and/or the Schengen Area (travel visa). Travel visas are intended in particular for people wishing to conduct business relations in France without actually residing in the country. They are issued for a total period of one to five years, thereby saving holders doing business in France from having to apply for a new visa each time they travel. The length of time that travel visa holders remain in France may not exceed 90 days per 180-day period. Procedure: A request should be filed with the embassy or consulate of France in the foreign national s usual country of. Engaging in paid employment (specific case for foreign employees): In cases where a foreign employee makes a short trip to France, a short-stay visa alone does not authorize the holder to engage in paid employment, for which obtaining a work may be a pre-requisite. To determine whether a work will be necessary when a company wishes to send or receive an employee in France for an assignment of less than three months, thought should be given to the reason for the stay. If an employee is traveling to France on a business trip to attend an occasional meeting or to meet clients, a short-stay visa will suffice, unless they are exempt from needing to hold one (due to their nationality). If an employee is on a short-term assignment to train, advise, or provide technical assistance to a company in France, a temporary work (autorisation provisoire de travail) is usually required as well as the visa. The deciding factor is whether the employee provides a service and/or effectively participates in the host company and/or is working as a subordinate for the host company. However, foreign employees undertaking paid employment for three months or less in one of the following fields are exempt from the requirement to obtain a provisional work : - Sporting, cultural, artistic and scientific events. - Conferences, seminars and trade shows. - Production and distribution of cinematic and audiovisual works, shows and recordings. - Modeling and artistic posing. - Personal service workers and domestic workers working in France during their private employers stay in the country. - Audit and consulting in IT, management, finance, insurance, architecture and engineering, under the terms of a service agreement or intra-company transfer agreement. - Occasional teaching activities by invited lecturers. - Spouses of French citizens, parents of French children, and close family members of French employees in possession of a temporary Private and Family Life Extending the stay: Short-stay visa holders must leave France once their visa expires, without any possibility for renewing the visa while in France. LONG-STAY VISA For stays of more than 90 days, a long-stay visa must be requested from the French consular authorities in the applicant s country of. This visa authorizes holders to request a once they arrive in France. Validity period: A long-stay visa is valid for three months, during which time the holder must apply for a Procedure: A long-stay visa should be requested from the French embassy or consulate in the applicant s usual country of. The applicant must then personally request a from the local Préfecture immediately upon arrival in France. 6 JULY 2017

7 1 TALENT PASSPORTS RESIDENCE PERMIT AND PAID OR SELF-EMPLOYMENT The type of required depends on what the foreign national will be doing in France, irrespective of whether they will be employed or self-employed. For all stays of up to 12 months, a long-stay visa equivalent to a (VLS-TS) corresponding to the reason for the stay is issued by the consular authorities. This VLS-TS visa authorizes not only entry to France but also the holder s rights for between 3 months and 12 months, without having to request a, and also paid employment or self-employment in France, as specified in each case. The holder s family can also enter France and remain on French soil. Any extension to their stay will require a For stays longer than 12 months, new multi-year s were introduced on November 1, Talent Passports and intra-company transfer s underpin the rights of foreign talent in France, making France a destination of choice for foreign investors, entrepreneurs, company directors and employees. The French Tech Visa is a separate procedure focusing on the tech ecosystem in France to make it easier for entrepreneurs, business investors and employees in this dynamic ecosystem to obtain this multi-year TALENT PASSPORTS Foreign investors, entrepreneurs, company directors and employees can obtain a multi-year Talent Passport if they meet the eligibility criteria specific to the reason for their stay in France. Validity period: Four years (on a renewable basis) Procedure: Applications for long-stay visas and s must be submitted to the French embassy or consulate in the applicant s usual country of no more than three months before the date of arrival in France. As soon as they arrive in France, applicants must apply to the Préfecture at their place of in France for a Talent Passport Taking up paid or self-employment: Talent Passport holders can undertake paid or self-employment for which their was issued, whether it be commercial, industrial or as an employee, provided that, in the case of regulated professions, they have the required qualifications. Extending a stay: Renewal applications must be submitted to the Préfecture in the place of two months before the expires, by presenting documents establishing that the applicant continues to meet the conditions under which their was issued. After five years regular and uninterrupted in France, an application may be made for a card, authorizing the holder to stay and undertake any paid or selfemployment in France for 10 years on a renewable basis. Accompanying family members: Upon application, spouses will be issued with a Talent Passport Family This authorizes them to stay and undertake any paid or self-employment in France throughout the validity period of the foreign national s TALENT PASSPORTS Investors, entrepreneurs and company directors Employees Other categories - Business investors investing at least 300,000 in France. - Entrepreneurs with an innovative business project. - Company directors or legal representatives of a business in France. - Entrepreneurs putting at least 30,000 into a new business. - Skilled employees and employees of an innovative new company (jeune entreprise innovante JEI). - Highly skilled employees (European Union Blue Card). - Employees on assignment under an intra-company transfer where a French contract is signed. - Researchers, performing artists. foreigners who are nationally or internationally recognized in scientific, literary, artistic, intellectual, educational or sporting fields. 7 JULY 2017

8 1 TALENT PASSPORTS INVESTING AND UNDERTAKING A COMMERCIAL OR INDUSTRIAL ACTIVITY IN FRANCE Four categories of Talent Passport are likely to apply to foreign company directors, company founders and investors. TALENT PASSPORTS TALENT PASSPORT MARKED COMPANY DIRECTOR TALENT PASSPORTS TALENT PASSPORT MARKED BUSINESS INVESTOR + 300,000 A Talent Passport is issued to a foreign national wishing to serve as a company s legal representative (company director) in France. A company director is an individual appointed to act as a company s representative in France for all acts relating to that company s management, for which they are answerable to the shareholders, management and labor, and third parties, particularly in the areas of personnel management and employment law. Those with the power to bind a company, and thus with the status of company director, include the following: - The director of a limited liability company (société à responsabilité limitée SARL). - The Chairman and CEO of a public limited company (société anonyme SA) or simplified limited company (société par actions simplifiée SAS). - An individual with the power to bind a foreign legal entity (representative of a branch or liaison office). A Talent Passport is issued to a foreign national making a direct business investment in France and wishing to settle in France to monitor the progress of their investment. Purely financial investments do not require the investor to reside in France, and are therefore not eligible for a In such cases, a multiple-entry shortstay visa known as a travel visa may suffice. The DIRECCTE (Regional Directorate for Enterprise, Competition, Consumption and Employment) office local to where the business will be based in France may be asked to appraise a project s economic viability. Investors and business angels associated with the French Tech program are also eligible for this type of French Tech Visa for Investors = Talent Passport marked business investor Further information about this procedure can be found on the French Tech Visa website. TALENT PASSPORTS TALENT PASSPORT MARKED NEW BUSINESS + 30,000 TALENT PASSPORTS TALENT PASSPORT MARKED INNOVATIVE BUSINESS PROJECT A foreign national planning to set up a new business in France is likely to be eligible for a Talent Passport provided, in particular, that they are injecting at least 30,000 into the planned business venture. The planned business venture may take various forms: - A business in the applicant s own name. - A French company. - A French company that is a subsidiary of a foreign company. - An establishment of a foreign legal entity The DIRECCTE (Regional Directorate for Enterprise, Competition, Consumption and Employment) office local to where the business will be based in France may be asked to appraise a project s economic viability. A Talent Passport is issued to a foreign national with an innovative business project, which they want to develop in France and which has been recognized by a public-sector body. French Tech Ticket winners and startup founders selected by a French Tech incubator or accelerator are also eligible for this type of French Tech Visa for Founders = Talent Passport marked innovative business project Further information about this procedure and a list of French Tech partner incubators can be found on the French Tech Visa website. Otherwise, foreign company directors, company founders and investors can also apply for a long-stay visa equivalent to a (known as a VLS-TS ) marked Entrepreneur/Independent Professional, enabling them to move to France and carry on their business for one year, on a renewable basis subject to certain conditions. 8 JULY 2017

9 1 TALENT PASSPORTS PAID EMPLOYMENT IN FRANCE Employees recruited by an employer located in France TALENT PASSPORTS FOR HIGHLY SKILLED EMPLOYEES: TALENT PASSPORT MARKED EUROPEAN UNION BLUE CARD TALENT PASSPORTS TALENT PASSPORT MARKED SKILLED EMPLOYEE OR EMPLOYEE OF AN INNOVATIVE NEW COMPANY (JEUNE ENTREPRISE INNOVANTE JEI) To make France more attractive to highly skilled employees, they are now eligible for a Talent Passport This replaces the old European Union Blue Card. Holders of a European Union Blue Card granted by another European Union Member State, and who have stayed in that Member State for at least 18 months, may be issued with this type of if they apply within one month of entering France.. Employees of startups or scale-ups that are members of the French Tech Pass program are also eligible for this type of French Tech Visa for Employees = Talent Passport marked European Union Blue Card Further information about this procedure and eligibility criteria for the French Tech Pass can be found on the French Tech Visa website. Skilled employees holding a qualification at least equivalent to a Master s degree issued by a nationally authorized higher education institution may be eligible for the benefits offered by the Talent Passport scheme. The following qualifications are recognized: - Vocational degrees - Advanced Master s degrees and Master of Science degrees (accredited by the Conférence des Grandes Écoles) - A qualification at least equivalent to a Master s degree Employees of an innovative new company (jeune entreprise innovante JEI) are also eligible for a Talent Passport to boost this type of business and help make France a more attractive business location. Evidence of JEI status must be supplied by the employer and attached to the application for a long-stay visa and Talent Passport submitted by the foreign applicant to the relevant consulate. For further information about JEI status, please refer to the welcometofrance.com website. TALENT PASSPORTS FOR EMPLOYEES ON INTRA-COMPANY TRANSFER: TALENT PASSPORT MARKED EMPLOYEE ON ASSIGNMENT Intra-company transfers are commonplace, and the Talent Passport makes them easier. It is issued to foreign nationals recruited under a French employment contract by the French business where the assignment is undertaken, belonging to the same group of companies as the company that employed them in their home country. Employees of startups or scale-ups that are members of the French Tech Pass program are also eligible for this type of French Tech Visa for Employees = Talent Passport marked skilled employee or employee of an innovative new company Further information about this procedure and eligibility criteria for the French Tech Pass can be found on the French Tech Visa website. 9 JULY 2017

10 1 ICT Employees posted by an employer located outside France ICT INTRA-COMPANY TRANSFER (ICT) PERMITS A specific for employees posted under an intra-company transfer or in connection with the provision of a service. Employees are said to be posted when an employer regularly established outside France entrusts its employees with a specific assignment to be undertaken in France. During the posting period, posted employees keep their employment contract with their original employer outside France, which oversees them and has the power to control the performance of assignments and sanction any shortcomings. French employment law (Labor Code) allows for the following categories of posting: - Performance of a service. - Intra-company transfer. - Provision of employees on a temporary basis. - Undertaking an own-account activity. When undertaking intra-company transfers, employees posted to France by an employer located outside France and whose original employment contract are maintained are not eligible for a Talent Passport. Subject to conditions on length of service within the company and pay, among others, posted employees may be eligible for another type of multi-year : - The Intra-company transfer (Salarié détaché ICT) - The Intra-company transfer (Salarié détaché mobile ICT), if they have already been issued with this type of by another European Union Member State. Postings to France must be notified in advance by the employer based outside France, using the Ministry of Labor s mandatory paperless service Sipsi. 1 Where a bilateral social security agreement exists, a social security certificate of posting must also be applied for from the relevant liaison agency in the home country before the employee arrives in France. This document certifies that the posted employee remains registered with the social security system in their home country. Postings are, by nature, temporary. Once they have completed their assignment, posted employees return to their position within their home company. Validity period: The same as the assignment, up to a maximum of three years (non-renewable). Procedure: Applications must be submitted to the French embassy or consulate in the foreign national s usual country of no more than three months before the date of arrival in France. Employees meeting the conditions enter France with a long-stay visa marked salarié détaché (mobile) ICT, valid for three months, which allows them to apply for a corresponding The must be applied for upon arrival in France at the Préfecture of the applicant s place of in France. Taking up paid employment: The multi-year is valid as a work and allows the holder to take up the paid employment for which the was issued. Extending a stay: The total length of stay in France may not exceed three years (including visa, initial application and renewal). Renewal applications within this period must be submitted to the Préfecture two months before the expires, provided that the conditions of issuance of the are met. Accompanying family members: The spouse should apply to be issued with an Intra-company transfer family (salarié détaché ICT famille or salarié détaché mobile ICT famille) authorizing them to reside and take up any paid or self-employment in France throughout the validity period of the foreign employee s 1 With effect from January 1, 2018, a contribution of 40 will be payable each time a posting is notified (valid for six months). 10 JULY 2017

11 1 Applying for a (Talent Passports and intra-company transfers) Visa application and application prepared by the foreign national with the host or originating company Application submitted 3 months before arrival in France e m b a s s y Consulate or French Embassy in the employee s usual country of Processing time: days Visa issued (pre-requisite to obtaining a once in France) Residence requested Préfecture or Sous-Préfecture where the employee will be residing in France 4. Residence issued p r é f e c t u r e Processing time: 1-2 months Arrival in France Applying for a (excluding Talent Passports and intra-company transfers) Work requested for the foreign national by the host company in France from the DIRECCTE (local employment authorities) DIRECCTE Embassy Work issued by the DIRECCTE, which forwards it to the consular authorities being used by the foreign national applicant e m b a s s y Visa requested, along with the work, by the foreign national from the Consulate or French Embassy p r é f e c t u r e Stay may be extended by requesting a from the Préfecture Medical examination booked at the Immigration and Citizenship Office (OFII); visa approved for 1 year Arrival in France Visa issued 11 JULY 2017

12 1 INVESTORS, COMPANY DIRECTORS, COMPANY AND STARTUP FOUNDERS STATUS / POSITION VISA AND RESIDENCE PERMIT ISSUED MAX. RESIDENCE PERIOD IN FRANCE ELIGIBILITY CRITERIA HOW TO APPLY EXTRA FORMALITIES WORK PERMIT ACCOMPANYING FAMILY INVESTOR Long-stay visa + Talent Passport - business investor 4 years Renewable Eligible for a card after 5 years - Investment of at least 300,000 in fixed tangible or intangible assets. - Investment either directly or via a company in which they have at least a 30% shareholding. - Ownership of at least 10% of the company in which the investment is being made. - Creation/protection, or commitment to create/ protect, jobs in the 4 years following the investment. Application: Consulate (applicant s country of ) The Consulate may consult the local employment authorities (DIRECCTE - Pôle 3E) for their project appraisal Renewal: Préfecture (applicant s place of in France) None N/A* Talent Passport family Permit valid for the same period as the main Any paid employment may be undertaken. COMPANY DIRECTOR OR LEGAL REPRESENTATIVE OF A FRENCH COMPANY Long-stay visa + Talent Passport - company director 4 years Renewable Eligible for a card after 5 years - Three months service in an establishment or business belonging to the same group, as an employee or company director. - Gross annual pay of at least 3x the statutory national minimum wage (SMIC) = 53, (1/1/2017). - Appointment as legal representative of an establishment or company set up in France. Application: Consulate (applicant s country of ) Renewal: Préfecture (applicant s place of in France) None N/A* Talent Passport family Permit valid for the same period as the main Any paid employment may be undertaken. COMPANY FOUNDER Long-stay visa + Talent Passport - new business 4 years Renewable Eligible for a card after 5 years - Qualification corresponding to a master s degree or equivalent, or at least 5 years commensurate professional experience. - A real, serious plan to form an economically viable business in France. - Investment of at least 30,000 in the planned business. - Annual financial means of at least the statutory national minimum wage (SMIC) = 17, (1/1/2017). Application: Consulate (applicant s country of ) The Consulate will consult the local employment authorities (DIRECCTE - Pôle 3E) for their project appraisal Renewal: Préfecture (applicant s place of in France) None N/A* Talent Passport family Permit valid for the same period as the main Any paid employment may be undertaken. ENTREPRENEUR WITH AN INNOVATIVE BUSINESS PROJECT (STARTUP) Long-stay visa + Talent Passport innovative business project 4 years Renewable Eligible for a card after 5 years - An innovative business project to be developed in France. - Recognition of the project by a public-sector body (government, local authorities, public institutions, public corporation, etc.). - Annual financial means of at least the statutory national minimum wage (SMIC) = 17, (1/1/2017). Application: Consulate (applicant s country of ) Renewal: Préfecture (applicant s place of in France) None N/A* Talent Passport family Permit valid for the same period as the main Any paid employment may be undertaken. COMPANY DIRECTOR NOT ELIGIBLE FOR A TALENT PASSPORT COMPANY DIRECTOR NOT RESIDING IN FRANCE Long-stay visa equivalent to a (VLS-TS) or an Entrepreneur/ independent professional temporary (CST) Schengen short-stay Business Trip visa. May obtain a travel visa. 12 months Renewable Eligible for a card after 5 years Up to 90 days per 180-day period - Economically viable business plan or an existing company s ability to pay at least the statutory national minimum wage (SMIC) = 17, (1/1/2017). - Business compatible with public safety, health and peace. - Compliance with all professional obligations (qualifications, professional experience, etc.). - No professional disqualifications or prohibition orders. - Must be the company s legal representative. - Certain foreign nationals are exempt from the short-stay visa due to their nationality. Application (VLS-TS): Consulate (applicant s country of ) The Consulate will consult the local employment authorities (DIRECCTE - Pôle 3E) for their project appraisal Renewal (CST): Préfecture (applicant s place of in France) Application: Consulate (applicant s country of ) Renewal: New visa and/or should be requested at the Consulate (applicant s country of ) Upon arrival in France: Medical examination at the Immigration and Citizenship Office (OFII). Republican citizenship contract (CIR). None N/A* N/A* Separate or Family reunification application with the Immigration and Citizenship Office (OFII) (applicant s place of ); forwarded to the Préfecture. Separate visa required *N/A: The applicant is a company director and so does not have employee status under French employment law 12 JULY 2017

13 1 EMPLOYEES WORKING UNDER A FRENCH EMPLOYMENT CONTRACT STATUS / POSITION VISA AND RESIDENCE PERMIT ISSUED MAX. RESIDENCE PERIOD IN FRANCE ELIGIBILITY CRITERIA HOW TO APPLY EXTRA FORMALITIES WORK PERMIT ACCOMPANYING FAMILY HIGHLY SKILLED EMPLOYEE EMPLOYEE ON INTRA- COMPANY TRANSFER (FRENCH CONTRACT) YOUNG GRADUATE OR EMPLOYEE OF AN INNOVATIVE NEW COMPANY (JEI) EMPLOYEE WITH A PERMANENT FRENCH CONTRACT NOT ELIGIBLE FOR A TALENT PASSPORT EMPLOYEE WITH A FIXED- TERM FRENCH CONTRACT NOT ELIGIBLE FOR A TALENT PASSPORT Long-stay visa + Talent Passport - European Blue Card Long-stay visa + Talent Passport - employee on assignment Long-stay visa + Talent Passport - young graduate or employee of an innovative new company Long-stay visa equivalent to a (VLS-TS) or an Employee temporary (CST) Long-stay visa equivalent to a (VLS-TS) or a Temporary Worker temporary (CST) 4 years Renewable Eligible for a card after 5 years 4 years Renewable Not eligible for a card 4 years Renewable Eligible for a card after 5 years 12 months Renewable Eligible for a card after 5 years Duration of fixed-term contract (CDD) - Permanent or fixed-term employment contract for at least 12 months with an employer established in France. - Qualification awarded on completion of at least 3 years higher education, or documents providing evidence of 5 years commensurate professional experience. - Gross annual pay of at least 1.5x the average annual gross salary set by decree = 53, (1/1/2017). Holders of a Blue Card granted by another EU Member State, who have lived there for at least 18 months, may receive this type of if they apply within 1 month of entering France. - An employment contract with the subsidiary in France. - At least 3 months service in the group to which the employing company belongs. - Gross annual pay of at least 1.8x the statutory national minimum wage (SMIC) = 31, (1/1/2017). - Gross annual pay of at least 2x the statutory national minimum wage (SMIC) = 35, (1/1/2017). - Permanent or fixed-term employment contract for at least 3 months with an employer established in France, plus a qualification equivalent to a master s degree obtained in France. - For employees of a JEI, the company must be officially recognized as such (and meet all the following conditions: <8 years old, consolidated workforce of <250 employees, and revenue < 50 million; >50% of equity owned by individuals; >15% of revenues spent on research; the company must not arise from a concentration of undertakings). Must have a permanent French employment contract approved by the local employment authorities (DIRECCTE) where the employee will be working as part of an admission procedure. Must have a fixed-term French employment contract approved by the local employment authorities (DIRECCTE) where the employee will be working as part of an admission procedure. Application: Consulate (applicant s country of ) Renewal: Préfecture (applicant s place of in France) Application: Consulate (applicant s country of ) Renewal: Préfecture (applicant s place of in France) Application (VLS-TS): Consulate (applicant s country of ) Renewal (CST): Préfecture (applicant s place of in France) Application (VLS-TS): Consulate (applicant s country of ) Renewal (CST): Préfecture (applicant s place of in France) Application (VLS-TS): Consulate (applicant s country of ) Renewal (CST): Préfecture (applicant s place of in France) None None None Upon arrival in France: Medical examination at the Immigration and Citizenship Office (OFII). Republican citizenship contract (CIR). Upon arrival in France: Medical examination at the Immigration and Citizenship Office (OFII) Republican citizenship contract (CIR). The multiyear Talent Passport is also valid as a work The multiyear Talent Passport is also valid as a work The multiyear Talent Passport is also valid as a work Yes. The employer sends the application file to the local employment authorities (DIRECCTE) where the employee will be working. Yes. The employer sends the application file to the local employment authorities (DIRECCTE) where the employee will be working. Talent Passport family Permit valid for the same period as the main Valid for up to 4 years (renewable). Any paid employment may be undertaken. Talent Passport family Permit valid for the same period as the main Valid for up to 4 years (renewable). Any paid employment may be undertaken. Talent Passport family Permit valid for the same period as the main Valid for up to 4 years (renewable). Any paid employment may be undertaken. Separate or Family reunification application to be filed with the Immigration and Citizenship Office (OFII) in the applicant s place of in France before being forwarded to the Préfecture. Separate or Family reunification application to be filed with the Immigration and Citizenship Office (OFII) in the applicant s place of in France before being forwarded to the Préfecture. 13 JULY 2017

14 1 EMPLOYEES WHOSE ORIGINAL FOREIGN EMPLOYMENT CONTRACT REMAINS VALID STATUS / POSITION VISA AND RESIDENCE PERMIT ISSUED MAX. RESIDENCE PERIOD IN FRANCE ELIGIBILITY CRITERIA HOW TO APPLY EXTRA FORMALITIES WORK PERMIT ACCOMPANYING FAMILY EMPLOYEE ON INTRA- COMPANY TRANSFER (POSTING, CONTRACT WITH A COMPANY ESTABLISHED OUTSIDE THE EU) Long-stay visa + Intracompany transfer (Salarié détaché ICT) 3 years Non-renewable Not eligible for a card - At least 3 months service in the group to which the company employing them belongs. - An employment contract with the home company sending them to work as a senior manager or expert in France. - No employment contract is entered into with the host company in France. Application: Consulate (applicant s country of ) Extension: New visa and/or should be requested at the Consulate (applicant s country of ) Before arriving in France: - Apply to social security (home country) for a posting certificate - Obtain a prior posting declaration from the Labor Inspectorate The multi-year Intra-company transfer is also valid as a work Intra-company transfer - Family issued. Permit valid for the same period as the main Valid for up to 3 years (non-renewable). Any paid employment may be undertaken. EMPLOYEE ON INTRA- COMPANY TRANSFER (POSTING, CONTRACT WITH A COMPANY ESTABLISHED IN THE EU) Long-stay visa + Intracompany transfer (Salarié détaché mobile ICT) 3 years Non-renewable Not eligible for a card - An Intra-company transfer issued by another EU Member State. - An amendment to the employment contract entered into with their employer specifying the assignment in France and pay conditions. - Their home company and the host company belong to the same group. For assignments <90 days, the employer of the employee posted to France must give advance notification to the Prefect of the département where the host company is located. Application: Consulate (applicant s country of ) Extension: New visa and/or should be requested at the Consulate (applicant s country of ) Before arriving in France: - Apply to social security (home country) for a posting certificate - Obtain a prior posting declaration from the Labor Inspectorate The multi-year Intra-company transfer is also valid as a work Intra-company transfer - Family issued. Permit valid for the same period as the main Valid for up to 3 years (non-renewable). Any paid employment may be undertaken. EMPLOYEE NOT ELIGIBLE FOR INTRA- COMPANY TRANSFER RESIDENCE PERMIT (SALARIÉ DÉTACHÉ ICT) POSTING < 3 MONTHS Short-stay visa Up to 90 days within the Schengen Area per half-year - Must be an employee of the foreign company prior to the posting. - Must be posted for an assignment on the foreign company s behalf or to provide a service with a company based in France. Application: Consulate (applicant s country of ) Extension: New visa and/or should be requested at the Consulate (applicant s country of ) Before arriving in France: - Apply to social security (home country) for a posting certificate - Obtain a prior posting declaration from the Labor Inspectorate Upon arrival: - Medical examination at the Immigration and Citizenship Office (OFII) - Republican citizenship contract (CIR) Yes, unless exempt under the Decree of October 28, The employer sends the application file to the local employment authorities (DIRECCTE) (place of work). Separate visa required EMPLOYEE FROM OUTSIDE GROUP NOT ELIGIBLE FOR INTRA- COMPANY TRANSFER RESIDENCE PERMIT (SALARIÉ DÉTACHÉ ICT) POSTING > 3 MONTHS Temporary Worker long-stay visa equivalent to a (VLS-TS) Depends on length of assignment: 3-12 months Renewable subject to certain restrictions - Must be an employee of the foreign company prior to the posting. - Must be posted for an assignment on the foreign company s behalf or to provide a service with a company based in France. Application (VLS-TS): Consulate (applicant s country of ) Renewal (CST): Préfecture (applicant s place of in France) Before arriving in France: - Apply to social security (home country) for a posting certificate - Obtain a prior posting declaration from the Labor Inspectorate Upon arrival: - Medical examination at the Immigration and Citizenship Office (OFII) - Republican citizenship contract (CIR) Yes. The employer sends the application file to the local employment authorities (DIRECCTE) (place of work). Separate or Family reunification application to be filed with the Immigration and Citizenship Office (OFII) in the applicant s place of in France before being forwarded to the Préfecture. EU: European Union - 28 countries EEA: European Economic Area - EU + Iceland, Liechtenstein and Norway - 31 countries Schengen Area: 26 countries Local employment authorities (Unités territoriales): foreign labor department of the Regional Directorate for Enterprise, Competition, Consumption and Employment (Direction régionale des entreprises, de la concurrence, de la consommation du travail et de l emploi DIRECCTE). OFII: French Immigration and Citizenship Office (Office français de l immigration et de l intégration) CESEDA: Code for Entry and Residence of Foreign Persons and the Right of Asylum (Code de l'entrée et du séjour des étrangers et du droit d'asile) 14 JULY 2017

15 2 SOCIAL PROTECTION Foreign nationals may opt for continued coverage by the health and social security system in their country of origin if a reciprocal social security agreement exists between France and their home country. France has an extensive array of bilateral social security agreements, making it all the more easy to transfer employees. In the absence of a reciprocal agreement, any employed or self-employed person working in France must be registered with social security. All employees working in France, irrespective of their nationality, age or type of employment contract, must be registered with the general scheme of the French social security system, while directors are typically covered by the French social security scheme for self-employed workers (RSI). REGISTERING WITH FRENCH SOCIAL SECURITY Foreign employees working in France are, in principle, subject to French health cover and social security legislation, regardless of their nationality or the location of their employer. Accordingly, employees and their families enjoy full access to France s generous social security system, which includes: - Insurance against ill health, maternity/paternity, disability and death - Insurance against accidents at work and occupational disease - Pensions - Family benefits - Unemployment benefit Salaries and benefits (benefits in kind, expatriation bonuses, etc.) paid to foreign employees are subject to all social security contributions at current rates, payable to the mandatory and supplementary schemes. Employers are responsible for registering their employees with the French social security system, if this is not already the case, through a registration request with the local health insurance fund (Caisse primaire d assurance maladie CPAM) via a pre-hiring declaration form (DPAE). Employees and accompanying family holding a Talent Passport should contact the CPAM in Paris, which centralizes registration requests and handles various formalities. Once they have been enrolled with the French Social Security system, each insured party is given a social security number and a Carte Vitale. A Carte Vitale is a smart card holding all information about the insured patient so that the French social security system can make healthcare reimbursements, and the holder can get their healthcare costs paid up front in this way (the so-called tiers payant system). It should also be noted that all foreign nationals, whether they are employees or self-employed, may still continue to make voluntary contributions to the social security system in their home country. EXEMPTION FROM FRENCH SOCIAL SECURITY Citizens of the European Union, European Economic Area and Switzerland may be posted to work in other Member States for a two-year period (renewable once), and may consequently continue to make contributions to the social security system in their home country. Employees from countries that have signed bilateral agreements with France may remain registered with the social security system of their country of origin during all or part of the duration of their posting in France. The length of time for which coverage can be maintained from the social security system in the country of origin is specified in the bilateral agreement (from a number of months to five years), as is the length of the first posting, which may be renewable. In practice, employees must provide evidence that they are registered in their home country to benefit from the application of European Union regulations and bilateral social security agreements. Employers should contact the liaison body in their employee s country of origin to obtain a posting certificate before their arrival in France. At the end of the initial or extended posting period, posted employees must register with the French social security system. They may, however, choose to remain registered with the social security system in their home country. 15 JULY 2017

16 3 TAXATION taxation Employees and company directors coming to work in France stand to benefit from very advantageous tax arrangements, subject to certain conditions. DETERMINING TAX RESIDENCY Tax residency is not a matter of choice for the employer or the employee; it depends on legal or reciprocal agreements and treaties. Registration with the French social security system has no bearing on determining tax residency. A person is considered to be resident in France for tax purposes if one of the following criteria is met: - If France is the person s permanent place of, i.e. the habitual place of or that of their family (spouse and children). - Where the person has dual permanent, if France is the center of their financial and personal interests. - Where the person s center of interests cannot be determined, if their primary place of is in France (they reside in France for more than 183 days in the same year). - In the absence of any other deciding criteria (primary place of or no place of in either country), if the person holds French nationality. - In the event that the person has dual nationality or neither of the two nationalities, the matter is decided by mutual agreement of the tax authorities in the two countries. Tax residents in France are taxed on the entirety of their income earned from French sources or from other sources, but are also subject to international tax treaties and certain special tax systems, such as those for expatriates. If foreign sources of income are also taxed in the country of origin, double taxation is avoided by application of clauses written into a large number of bilateral tax treaties that France has signed with other countries (through the use of tax credits, etc.). THE FRENCH TAX SYSTEM FOR RESIDENTS INCOME TAX A French resident s income is taxed at progressively higher rates: Progressive tax rates in income bracket (by allowance unit) Tax rates in 2017 Income up to 9,710 inclusive 0% From 9,711 to 26,818 inclusive 14% From 26,819 to 71,898 inclusive 30% From 71,898 to 152,260 inclusive 41% More than 152,261 45% Salaries (tax category wages and salaries ) are taxable once social security contributions and all other mandatory contributions and business expenses have been deducted. HOW IS INCOME TAX CALCULATED? Income tax is calculated on the basis of the combined incomes of the household, which includes the resident, any spouse, and any dependent children. Income to be declared may come from various sources (wages, salaries and allowances, pension annuities, property income, etc.). The effective tax rate is determined on the basis of the size of the household using the family allowance method, whereby the total household income is divided by the number of household units, as follows: - One unit for each adult. - One half-unit for each of the first two children. - One unit for each child thereafter. The effective tax rate on total household income is thereby determined on the basis of the size of the household. Assuming income remains unchanged, the more dependents a household includes, the lower the tax rates it pays. Other expenses may also be tax-deductible or eligible for tax credits; these include expenses for domestic help, and certain household capital expenditure. 16 JULY 2017

17 3 Online simulation available at impôts-gouv.fr The following example is for a married couple with two dependent children. Their total household income amounted to 70,000 in the 2016 tax year, on which 4,742 was payable in income tax. Household income 70,000 Dependents 2 Number of household units 3 Total gross income 63,000 Net taxable income 63,000 Income tax payable 4,742 SPECIAL TAX EXEMPTION SCHEME FOR EXPATRIATES A special tax exemption scheme for expatriates exists to help attract company directors and employees to France by providing partial income tax exemption and diminishing their liability for the wealth tax (impôt de solidarité sur la fortune ISF). CONDITIONS The scheme is open to employees and company directors, regardless of nationality, coming to work full-time in France on condition that: - They have not been a tax resident in France during the five years prior to the date they started their job. - They are resident in France for tax purposes. ADVANTAGES The expatriate tax exemption scheme applies for up to eight years starting in the first full year after expatriates assume their new position, no earlier than July 6, 2016 (otherwise, exemption only applies for five years). Beneficiaries of the system receive exemption on: - Additional remuneration directly related to their work in France, i.e. expatriation bonuses as set out in their employment contract. - On part of their remuneration corresponding to work performed abroad, on condition that the trips made outside France are for the exclusive benefit of the company. - Many mobility-related allowances (e.g. payments for a reconnaissance trip, agency fees, moving fees and travel costs, school fees, etc.). - Half of all income from securities, capital gains from transfers of shares and ownership interests. - Wealth tax (impôt sur la fortune ISF) on their assets located outside France. - Social security contributions paid to a scheme in a foreign country. Total exemptions are capped at 50% of all remuneration or, alternatively upon request, 20% of taxable income earned for work performed abroad, excluding expatriation bonuses. Moreover, assignment remuneration is now exempt from payroll taxes. This additional exemption only applies to pay received from January 1, TAXATION FOR NON-RESIDENTS Non-residents working in France are only taxed on income from French sources. Remuneration paid in return for work carried out on French soil is taxable in France. Unless otherwise provided for by a tax treaty, salaries paid to non-residents are subject to tax deduction at source at a rate of up to 20% for the marginal income exceeding 41,327 (as of 2017). Non-resident employees are still required to file an income tax return with the French tax authorities at the Service des impôts particuliers non-résidents (tax service for non-resident individuals) and, if necessary, pay any difference between the amount deducted at source and the tax due. In order to avoid double taxation, tax deducted at source in France usually gives rise to an equivalent tax credit in the country of (depending on the tax treaty between France and the country of ). Furthermore, most international taxation treaties make provision for temporary postings, whereby income earned through salaried work in a country is not judged to be taxable in that country if the beneficiary resides there for less than 183 days per year, and if their remuneration is paid by or on behalf of an employer who is not resident in that country. 17 JULY 2017

18 TOOLBOX

19 CHECKLIST -6 months Visit the website to learn what French law says about immigration, taxation and social security coverage, along with practical advice for a successful move Generate a personalized guide on the website Working in France Intra-company transfers: determining your employer and pay structure -3 months Apply for a long-stay visa and at the consular authorities in your country of : Ensure you have a valid passport and all documents required to support your application Family: Apply for a long-stay visa and Check your tax arrangements Find out more about the French education system and international programs Find out more about accommodation options in France -2 months Working in France Long-stay visa equivalent to a (VLS-TS) (excluding Talent Passports and intra-company transfers): Employer application for a work with the local employment authorities (DIRECCTE) where the employee will be working Think about social security coverage: Employer application for a posting certificate or registration with the French social security system -1 month Working in France Intra-company transfers: Employer completes prior posting declaration Inform the authorities in your home country (change of address, tax authorities, etc.) Complete a customs declaration for personal belongings from abroad Arrival in France Request a (long-stay visa holders); or make a declaration at the French Immigration and Citizenship Office (OFII) (holders of a long-stay visa equivalent to a (VLS-TS)) Obtain a for your spouse and travel documents for your children Start working in France Register with French social security Enroll children at school Open a bank account in France Find out more about driving in France Register with the local authorities During 1st year Taxation: Declare your annual income Holders of a long-stay visa equivalent to a (VLS-TS) needing to extend their stay: Apply for a at the Préfecture two months before the VLS-TS expires Exchange your driving license 19 JULY 2017

20 Visit the website for everything you d like to know about: - Visas, s and work s - Taxation - Social security coverage - Day-to-day life (schools, accommodation, etc.) Services to help: Company directors Employees transferred to France Investors WELCOME OFFICE Law firms, relocation companies Startups Human resources departments For any further queries, you can contact the Welcome Office via an online form to receive a reply within three working days. 20 JULY 2017